- Category: Carbon Market
04 Feb 2013
- Published on Monday, 04 February 2013 08:57
- Hits (4584)
A wind farm in Vietnam and a solar facility in India are two of the newest examples of emission-reduction projects registered under the United Nations Framework Convention on Climate Change’s clean development mechanism program.
Under the Kyoto Protocol, the C.D.M. program provides opportunities for companies with emission-reduction projects in developing countries to double the value of their projects. Having a project registered as a C.D.M. allows it to earn certified emission reductions for every one tonne of carbon dioxide prevented from entering the atmosphere. The company can then trade and sell their C.E.R.’s for additional revenue.
According to the U.N.F.C.C., the C.D.M. program is going strong with its 6,000th project registered as of January 30.
There are C.D.M. projects in over 83 developing countries and over the past 10 years, these projects have delivered 110,000 megawatt of renewable energy production capacity and spurred $215 billion in investments.
The project reported to come in as number 6,000 is a wind farm project in Vietnam.
The Phuong Mai 3 Wind Power Project is being developed by Central Wind Power Joint Stock Company in Phu Cat district of Binh Dihn province in south central Vietnam. The 21 megawatt wind power plant will reduce emissions by 32,000 tonnes per year.
Tata’s second C.D.M. project
Another project that was recently registered with the C.D.M. is a 25 MW solar project in Mithapur, Gujarat, India by Tata Power
Tata Power is part of the Tata Group, a multinational company that is also India’s largest business group. They announced the C.D. M. registration of their Mithapur solar project on January 31.
“It gives us great pride and honor that our biggest solar project has been registered with the U.N.F.C.C.C. Milestones like these encourage us to move closer towards achieving our goals in reducing our carbon footprint,” said Anil Sardana, managing director of Tata Power.
This is Tata Power’s second C.D.M. registered project, following the registration of a 50.4 megawatt wind farm in Maharashtra in 2010.
The Mithapur solar project is one of the largest of its kind in the country and has crossed 43,000 MWh of generation since its commissioning in January 2012. The project will produce an estimated 39,597 MWh of renewable energy a year and reduce an annual average of 37,969 tons of carbon dioxide.
Tata Power, through its subsidiary Tata Power Renewable Energy, has signed a power purchase agreement for the project with utility Gujarat Urja Vikas Nigam.
The company had previously committed to reducing its carbon footprint and increasing the renewable energy component of their power mix to 20-25 percent.
“We’ll continue pursuing avenues to add clean and renewable energy generation capacities to increase our renewable energy portfolio wherever possible. We plan to add 150-200 MW of wind and 50 MW of solar power capacity every year,” added Mr. Sardana. – K.R. Jalbuena